Anawil cuts borrowings as equity and asset investment rises

Anawil Wire and Engineering Ltd reduced reported borrowings by Rs 94.6 crore to Rs 33.6 crore in Sep-26 from Rs 128.2 crore in Mar-26, while shareholders' funds increased by Rs 136.8 crore to Rs 226.3 crore. The shift coincided with Rs 40.6 crore growth in property, plant and equipment and capital work in progress.

How did Anawil's funding mix change by Sep-26?

Anawil's funding mix shifted towards shareholders' funds in the six months to Sep-26, with shareholders' funds rising to Rs 226.3 crore from Rs 89.5 crore in Mar-26. Share capital increased from Rs 19.7 crore to Rs 25 crore, while reserves and surplus rose from Rs 69.8 crore to Rs 201.3 crore.

Long-term borrowings declined by Rs 71.4 crore to Rs 27 crore, and short-term borrowings fell by Rs 23.2 crore to Rs 6.6 crore. Together, these movements reduced total borrowings to Rs 33.6 crore from Rs 128.2 crore, even as total equity and liabilities increased by Rs 25.9 crore to Rs 317.4 crore.

The Sep-26 movement followed higher debt at Mar-26. Long-term borrowings had risen from Rs 39 crore in Mar-25 to Rs 98.4 crore in Mar-26, while short-term borrowings increased from Rs 16.1 crore to Rs 29.8 crore. Shareholders' funds also rose from Rs 40.1 crore in Mar-25 to Rs 89.5 crore in Mar-26 before the larger Sep-26 increase.

Where did Anawil deploy capital on its balance sheet?

Anawil increased non-current assets by Rs 42.1 crore to Rs 188.8 crore in Sep-26 from Rs 146.7 crore in Mar-26. Property, plant and equipment increased by Rs 15.7 crore to Rs 151.6 crore, while capital work in progress rose by Rs 24.9 crore to Rs 30.7 crore.

Property, plant and equipment had already increased from Rs 58.9 crore in Mar-25 to Rs 135.9 crore in Mar-26. Capital work in progress was Rs 1.2 crore in Mar-25 and Rs 5.8 crore in Mar-26, compared with Rs 30.7 crore at Sep-26. The two categories together amounted to Rs 182.3 crore at Sep-26, versus Rs 141.7 crore at Mar-26.

Other non-current assets rose from Rs 4.6 crore to Rs 6.2 crore, while intangible assets stayed at Rs 30 lakh in both periods. The presentation does not identify the projects represented by the capital work in progress balance, provide commissioning dates, or quantify prospective revenue from these assets.

What changed in Anawil's working capital?

Anawil's current assets declined by Rs 16.3 crore to Rs 128.5 crore at Sep-26 from Rs 144.8 crore at Mar-26, principally because inventories fell by Rs 18.4 crore to Rs 32.3 crore. Trade receivables rose by Rs 1 crore to Rs 39.9 crore, and short-term loans and advances increased by Rs 4.3 crore to Rs 54.3 crore.

Cash and cash equivalents decreased from Rs 1.6 crore to Rs 20 lakh, while other current assets fell from Rs 3.5 crore to Rs 1.8 crore. Receivables and short-term loans and advances together were Rs 94.2 crore at Sep-26, compared with Rs 88.9 crore at Mar-26.

Total current liabilities decreased by Rs 39.8 crore to Rs 63.5 crore. Trade payables fell by Rs 20.9 crore to Rs 25.8 crore and short-term borrowings fell by Rs 23.2 crore to Rs 6.6 crore, partly offset by a Rs 5.8 crore increase in other current liabilities to Rs 27 crore.

How do Anawil's cash flows relate to the balance sheet?

Anawil reported net cash flow from operating activities of Rs 28.3 crore for Sep-26, compared with Rs 12.5 crore for Mar-26. Net cash used in investing activities was Rs 53.4 crore for Sep-26, after an outflow of Rs 93 crore for Mar-26, alongside the increases in property, plant and equipment and capital work in progress.

Net cash flow from financing activities was an inflow of Rs 23.7 crore for Sep-26, versus an Rs 82 crore inflow for Mar-26. The cash-flow statement does not divide the Sep-26 financing inflow between equity proceeds, borrowings, repayments or other financing items, so it does not provide a reconciliation of each funding-balance movement.

The three categories resulted in a Rs 1.4 crore net decrease in cash and cash equivalents for Sep-26. Opening cash was Rs 1.6 crore and closing cash was Rs 20 lakh, whereas Mar-26 recorded a Rs 1.5 crore increase and ended with Rs 1.6 crore of cash and cash equivalents.

What operating results accompanied Anawil's balance-sheet changes?

Anawil reported revenue from operations of Rs 154 crore in H1FY27, compared with Rs 143.3 crore for FY26. Earnings before interest, tax, depreciation and amortisation were Rs 36.1 crore in H1FY27, and profit after tax was Rs 14.4 crore.

The H1FY27 earnings before interest, tax, depreciation and amortisation margin was 23.4%, against 42.7% in FY26, while the profit-after-tax margin was 9.3%, against 25.1%. Cost of goods sold was Rs 89.7 crore in H1FY27 versus Rs 41.7 crore in FY26, but these are half-year and full-year periods and are not like-for-like comparisons.

Finance cost was Rs 5.3 crore in H1FY27, compared with Rs 5.8 crore for FY26, while depreciation and amortisation was Rs 12.9 crore versus Rs 11.3 crore. The presentation states that Mar-26 figures are audited and that Mar-24 and Mar-25 figures are restated.

Conclusion

Anawil's Sep-26 balance sheet combines a Rs 94.6 crore reduction in reported borrowings with a Rs 136.8 crore increase in shareholders' funds. At the same time, property, plant and equipment plus capital work in progress increased to Rs 182.3 crore, while inventories and trade payables declined from their Mar-26 balances.

The next balance-sheet developments to watch are the Rs 30.7 crore capital work in progress balance and the Rs 54.3 crore of short-term loans and advances at Sep-26. The presentation does not disclose a project-completion schedule, the purpose of the capital work in progress, or targets for these balances, leaving subsequent financial statements to show their progress.